Nigeria to restructure JV with Royal Dutch Shell, Exxon, others

Nigeria to restructure JV with Royal Dutch Shell, Exxon, others

Nigeria, Africa’s largest economy said it is looking at restructuring its stakes in joint ventures, JVs, with Royal Dutch Shell, Exxon and others.

The government through the debt management office, DMO, said the government is looking at raising USD2.26 billion by restructuring its equity to allow more private sector participation.

The plan is to create new assets in the oil and gas sector. This plan was stated in the country’s 2018 budget where Nigeria plans to spend NGN8.6 trillion.

It is not clear if the likes of Royal Dutch Shell, Chevron and ExxonMobil will be taking more equity in these JVs.

In the latest rating opinion, Moody’s downgraded Nigeria’s short and long-term issuer credit rating to B2 from B1.

The credit rating agency said it is concerned about Nigeria’s exposure to political and economical risks as its borrowing is becoming bloated.